The Financial Industry Regulatory Authority (FINRA) has fined and suspended Benjamin Rosamond, a former general securities representative of Robinhood.
Rosamond first registered with FINRA in 2011. Rosamond was registered with FINRA as a General Securities Representative through an association with Robinhood Financial, LLC and Robinhood Securities, LLC from October 22, 2020 until July 7, 2023, when Robinhood Financial filed a Uniform Termination Notice for Securities Industry Registration (Form U5) stating that it and
Robinhood Securities had discharged Rosamond after allegations that he was involved “in an Outside Business Activity …that hadn’t been previously disclosed or approved by Robinhood.”
Between October 2020 and July 2023, while registered through Robinhood, Rosamond acted as an officer of an investment club for accredited investors, organized as a limited liability company. During that period, Rosamond executed securities transactions in the company’s brokerage accounts held at other member firms. Rosamond’s involvement in the business activity was outside the scope of his relationship with Robinhood, and Rosamond did not provide prior written notice to Robinhood of the outside business activity.
As a result of the foregoing activity, Rosamond violated FINRA Rules 3270 and 2010.
Between October 2020 and July 2023, as part of his participation in the outside business activity described above, Rosamond traded securities on behalf of the investment club through its brokerage accounts held at other member firms outside of Robinhood.
In total, Rosamond executed over 400 trades, totaling approximately $500,000 in principal value.
Rosamond did not receive compensation for the transactions.
Rosamond did not notify Robinhood that he was trading on behalf of the investment club.
Therefore, Rosamond violated FINRA Rules 3870 and 2010.
To settle the matter, Rosamond consented to the imposition of the following sanctions:
- a four-month suspension from associating with any FINRA member in all capacities; and
- a $7,500 fine.
